The private equity asset class is subdivided into four sub asset classes. These are venture, growth, buyouts and mezzanine. Each sub asset class involves the use of different financial instruments and involves investing in companies at different stages of their development. Venture has a focus on innovative companies, growth looks at a wider range of companies which can be scaled up, buyouts look for mature companies undervalued by their shareholders and mezzanine operates in a kind of specialist niche.
Key learning objectives:
The deal sizes and instruments used by of each of the four subclasses
The types of companies invested in, according to the sub classes